The Indonesian stock market had seen a positive streak over the last two sessions, with gains of almost 200 points, or 2.9%, making the Jakarta Composite Index climb just above the 7,230 point mark. However, this upward trend may reverse on Thursday.
Globally, Asian markets are projected to have mild performance following the Federal Reserve's rate decision. European markets witnessed a downturn, while the U.S markets presented mixed results.
In a day's trading, the index rose by 78.41 points or 1.10%, closing at 7,234.20. Highlights of the day included Bank CIMB Niaga's surge of 3.80%, Bank Mandiri's decline of 0.36%, Astra International's swift growth of 2.49% and Energi Mega Persada's fall by 0.96%. Other remarkable shifts included Astra Agro Lestari's 1.96% jump and Bumi Resources 1% slide. Bank Central Asia, however, remained unchanged.
U.S Wall Street's influence was minimal, as major averages sustained flat performance. Post-Federal Reserve's monetary policy announcement, the market saw a brief spike but ended with a mix of rises and falls.
Keeping its interest rates unchanged, the Federal Reserve cited a pause till it sees further progress toward its 2% inflation goal. Fed members reiterated that they need more confidence in inflation moving steadily towards 2% before considering a rate cut.
In economic developments, American payroll processor ADP reported that private sector jobs growth in April exceeded expectations. However, oil prices dipped to a seven-week low after data indicated an unforeseen surge in U.S. crude stockpiles last week.
Indonesia is expected to release April's consumer price figures; in March, inflation rose 0.52% monthly and 3.05% annually, while core consumer price index increased yearly by 1.77%.